The International Monetary Fund (IMF) made a significant announcement on Monday, revealing that its staff had reached an agreement with authorities from Ivory Coast concerning a review of two lending programs. This agreement marks a crucial milestone in the relationship between Ivory Coast and the IMF and sets the stage for the disbursement of $574 million once it receives approval from the IMF’s executive board.
The IMF highlighted Ivory Coast’s commendable performance under its existing financial arrangements, including the $3.5 billion Extended Fund Facility (EFF) and Extended Credit Facility (ECF) program, as well as the $1.3 billion Resilience and Sustainability Facility (RSF) program. According to the IMF, Ivory Coast has met the requirements set forth in these programs, demonstrating a commitment to sound economic policies and reforms.
The staff-level agreement reached between the IMF and Ivory Coast covers a comprehensive range of policies and reform measures aimed at achieving the objectives outlined in the lending programs. Notably, Ivory Coast has committed to further revenue-based fiscal consolidation, with the goal of reducing the fiscal deficit to 3% of gross domestic product (GDP) by 2025. Additionally, Ivory Coast has pledged to implement additional structural reforms designed to enhance economic resilience and sustainability.
Upon approval by the IMF’s executive board, the agreement will enable the disbursement of $574 million to Ivory Coast. This financial infusion will provide much-needed support to the country’s economy, contributing to its stability and fostering sustainable growth. The funds will be allocated towards various sectors and initiatives aimed at addressing key development priorities, including infrastructure development, social welfare programs, and poverty reduction efforts.
The IMF’s support for Ivory Coast comes at a critical juncture as the country continues to navigate various economic challenges, including the impact of the COVID-19 pandemic and external shocks. By partnering with the IMF and adhering to the terms of the lending programs, Ivory Coast is positioning itself to overcome these challenges and build a more resilient and prosperous future for its citizens.
In response to the IMF’s announcement, officials from Ivory Coast expressed gratitude for the continued partnership and support from the IMF. They emphasized their commitment to implementing the agreed-upon policies and reforms, recognizing the importance of fiscal discipline and economic stability in achieving long-term development objectives.
The agreement between the IMF and Ivory Coast reflects the IMF’s broader commitment to supporting low- and middle-income countries in their efforts to strengthen economic governance, promote sustainable growth, and reduce poverty. As Ivory Coast moves forward with the implementation of the agreed-upon measures, the IMF will continue to provide technical assistance and policy advice to ensure the effective utilization of the disbursed funds and the successful achievement of development goals.
